>> steve: all right. come o gretch, let's go! so long from charlotte, everybody. >> gretchen: see you back in new york. >> brian: it's off to the airport. same flight. a different mode of transportation. >> steve: where is brian? >> brian: there is only so much room in the suv. this is how i travel now. slow down! >> steve: so long from charlotte! see you monday. >> fox news alert new jobs report. added only 96,000,000 jobs. i'm bill hemmer in -- gregg jarrett in for bill hemmer. >> i'm heather chilledder

gregg: this latest report after the president's acceptance speech at the democratic national convention last night. here to talk about it, stuart varney, anchor of "varney & company" on the fox business note work. white house will claim, look, the total unemployment number came down a little bit. what say you? >> i say this is a flat-out bad report on the state of the economy. america simply is not at work. for every every job created last month, four people dropped out of the workforce. we have lower proportion of people actually working, who are actually working in the last 32 years. 368,000. that's the number to watch. 368,000 people just quit. no longer even looking for work. they are not part of the workforce. that is the reason why the unemployment rate went down. but you've got to balance that, i mean the politicians will no doubt spin the lower

unemployment rate but you must balance that fence a much smaller workforce. large numbers of people giving up hope in despair and only 96,000 jobs created. in an economy with 132 million paychecks, 96,000 new jobs is just a pittance. gregg: stuart, help me to understand this and i will get to the president's speech in just a moment but how is it the total number comes down when you're only adding 96,000 jobs here? >> because 368,000 people dropped out of the workforce. if you have a smaller workforce and relatively the same number of jobs proportion of unemployed comes down. so the rate, 8.1%, it is down. it is purely technical. it is purely statistical. not because we're producing thousands and hundreds of thousands new jobs. it is opposite. hundreds of thousands of people are dropping out of the workforce. gregg: the president was

briefed on the job numbers ahead of time before last night's speech, right? >> yes. the president gets the numbers on extremely important employment reports, he gets those numbers late afternoon. he got them yesterday. he then gave his speech closing out the democrat national convention. it could be that he, well he did know about these numbers. maybe he facted them in to what he had to say. he pleaded for more time last night to complete the recovery of the american economy. he knew we're not in very good shape and he also went back and repeated the promises he made four years ago with very limited economic goals. it could be that him knowing about these numbers influenced what he said last night. gregg: all right. stuart varney, thanks very much. just now getting reaction from governor mitt romney making the following statement on the august unemployment report. and we'll quote here. if last night was the party this morning is the hangover for every net new job

created, nearly four americans gave up looking for work entirely. this is more of the same for middle class families who are struggling and suffering through the worst economic recovery since the great depression. after 43 straight months of unemployment above 8% it is clear president obama just has not lived up to his promises and his policies have not worked. we are not better off than we were four years ago. the governor says, my plan for a stronger middle class will create 12 million new jobs by the end of my first term. america deserves new leadership, and that will get our economy moving again. just moments ago the reaction from governor romney. >>. heather: meantime, it is game on. 60-days to election day but first president obama making it official. >> madam chairwoman, delegates, i accept your

nomination for president of the united states. [cheers and applause] heather: the president rallying the party affectful and making the case that he needs more time to finish the job while blasting his opponent's ideas as the failed policies of the past. he also acknowledged that the world has changed since he took office four years ago, and seemed to say that winning the american people to his cause is tougher. but when he did, democrats gave him one of the biggest hands of the night. >> i am no longer just a candidate. i'm the president. [cheers and applause] heather: wendell goler live from charlotte for us. wendell, what impact will today's job numbers have on the campaign? >> reporter: heather the job numbers were positive disappointing but not unexpected given the economy's slowdown since the end of last year. in his speech last night the president basically confirmed his campaign is

left about hope or running on his record and more about buying time for his economic policies to work. >> the path we offer may be harder but it leads to a better place and i'm asking you to choose that future. i'm asking you to rally, around a set of goals for your country, goals in manufacturing, energy, education, national security, and the deficit. real achievable plans that will lead to new jobs, more opportunity, and rebuild this economy on a stronger foundation. >> reporter: now in response mitt romney's campaign basically said time's up. in a written statement campaign chairman matt rhodes said he offered more promises but he hasn't kept the promise he made four years ago. americans will hold president obama accountable for his record. romney himself said of the job numbers, if last night was the party, this morning is hangover. heather?

heather: democrats showcasing the president's foreign policy achievements. it was a bit of a roll reversal, right? >> reporter: polls suggest president obama is a clear favorite over mitt romney in that area and he is making the most of what amounts to a party role reversal. mr. obama won applause for ending the war in iraq, setting a deadline for withdrawing troops in afghanistan, something romney said is unwise. usama bin laden's picture was flashed on the big screen as another threat this country no longer faces and the president was skeptical of mitt romney's foreign policy thinking. >> after all you don't call russia our number one enemy, not al qaeda, russia, unless you're still stuck in a cold war mind warp. [cheers and applause] you might not be ready for diplomacy with beijing if you can't visit the olympics without insulting our closest ally. [cheers and applause]

>> reporter: romney criticized mr. obama's 2014 deadline for bringing troops home from afghanistan. he says it encourages the taliban to wait us out. heather? heather: we'll talk a little bit more in depth about the foreign policy angle of all this a little bit later. thank you very much, wendell goler live for us in charlotte. gregg: later today, governor romney will be holding a rally in new hampshire. he is running mate paul ryan, heading off to nevada. and later on fox news, governor romney sits down with bret baier live at 11:30 a.m. eastern time. heather: vice president, joe biden, he sought to contrast both candidates for president while calling governor romney a good man. >> president obama and governor romney, they're both, they're both loving husbands. they're both devoted fathers. but let's be straight. they bring a vastly

different vision and a vastly value set to the job. heather: and we will have more coverage and analysis of the presidential race throughout the show. gregg: speaking of the vice president, he hit governor mitt romney pretty hard on the issues of taxes and jobs. so how do his claims really measure up to the fact? molly henneberg live in washington with more on that. molly, one of the things you are looking at what joe biden said and romney about a territorial tax? >> reporter: gregg, we're looking this hour at the vice president's speech last night, going line by line through it. one of the things that jumped out when the vice president criticized part of governor romney's budget plan said would lead to more jobs overseas. but our fact checking crusade he didn't tell the whole story. first, here is that sound bite. >> as a matter of fact, in his budget proposal, and in his tax proposal he calls for a new tax.

it is called a territorial tax, which the experts have looked and they acknowledge it will create 800,000 new jobs all of them overseas. >> reporter: he is talking about romney's idea for corporate tax reform in which he wants to exempt corporations from paying domestic taxes on foreign prsts. -- profits. the vice president citing a study that didn't look at romney's plan and didn't say jobs created overseas would come at expense of jobs created home. plus a number of members of the president's export council supported the idea of a territorial tax as well. gregg, we'll continue looking through the speech and have more updates as we have them. gregg: i know you will. molly henneberg live from washington. heather. heather: a surprisings update on a story that first broke on this show yesterday. a plane was grounded because of a bomb scare. police say it was a hoax. wait until you hear who they

say was behind it. gregg: drew peterson convicted of killing his third wife. what the jury has to say about the trial and what it could mean about the case of his fourth wife which is still missing. heather: president obama makes his case for a second term but says the road ahead won't be easy. >> i won't pretend the path i'm offering is quick or easy. i never have. you didn't elect me to tell you what you wanted to hear. you elected me to tell you the truth. [cheers and applause] heather: what does karl rove think about that? find out next. he will react to it. stay tuned. many of my patients still clean their dentures with toothpaste.

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heather: welcome back. an investigation underway into a bomb hoax grounding a lean leave plane leaving philadelphia. someone reported a passenger carrying explosives on a flight bound for texas. the flight was immediately ordered return the to philly. the victim of the hoax was removed at gunpoint. he identified himself as christopher shell and his own sister says he is always getting into trouble. >> always in the wrong place at the wrong time and, i mean, may not even have anything to do with him. always seems like he is gets in the middle of something just ends up being chaotic. heather: maybe. well adding insult to injury shell was arrested when he eventually arrived in texas on unrelated outstanding

warrants. shell was reportedly going home for his birthday to be with his family since his mother died a year ago. gregg: president obama making his case for real election last night but setting a very different tone from his acceptance speech in 2008, and his keynote in 2004 when he first spoke about hope at the democratic national convention. take a listen. >> eight years later that hope has been tested by the cost of war, by one of the worst economic crises in history and by political gridlock that's left us wondering whether it is still even possible to tackle the challenges of our time. gregg: karl rove joins us former senior adivsor and deputy chief of staff to president george w. bush. he is also a fox news contributor. love to get your take on the speech but i want to get first of all, karl, your take on the jobs numbers

that just came out. economists were expecting and hoping for 125,000 new jobs. instead it is 96,000. so obviously the job market is slowing but the president will likely say, hey, wait a minute, see, we're heading in the right direction because the overall unemployment number dropped from 8.3 to 8.1. >> well look, as stuart varney pointed out earlier while they gained 96,000 jobs and unemployment rate went down the only reason it did because four times as many people became so discouraged they dropped out of the workforce all together. think about that. 96,000 people get jobs. 368,000 are so discouraged they give up. we now have the lowest workforce participation rate, 63.5%, that we've had in 32 years. gregg: is that lost on the voter though, karl? they will see that one number. that is the simplification of the whole thing? >> no. look here's why. u-6, this the broadest range

of, for gain of unemployment. 14.7% of all americans are people who are out of work, working part time but looking for full-time work or so discouraged they have given up looking all together. we're talking about nearly one out of every six americans. we know who those people are. we know somebody in that position. we have a family member or friend either not working or working part time and desperate for a full-time work or so discouraged they have given up work and that ain't good. we also have some sense it should be better. in fact the president sate, his people said, president said, if you pass stimulus bill unemployment would be 5.6%, if we did nothing, it would be 6% and it is 8.1. these numbers translate into real people's lives and we know people who are suffering and there is too much of it going on in america today and the president said, last night he said i won't pretend the path i'm offering is easy

and quick. well, wait a minute. he said i never have. gregg: he said it would be done with it within three years, right? >> right. exactly. and it hasn't happened. he promised us health insurance premiums would be down $2500 a month by the end of 2010. said i will cut the deficit in half by end of my first term. made very specific promises and pledges gregg. most of them on the economy. and it is not coming true. it will hurt him. gregg: karl, he didn't talk about his two signature achievements, the stimulus. he didn't talk about it at all really. there was only a veiled reference to the health care bill that he got passed. >> well, absolutely. they did them in the video. we have to acknowledge that. but the fact that the president didn't mention his two biggest domestic accomplishments says something about what he thinks, which is neither one of these things are very popular and they didn't work. when you have a "new york times" poll that says 7% of the american people think the stimulus

bill created jobs you're in trouble if you're a democrat president if you think that is the way to get our economy revved up again. gregg: so your take is, look we heard the promises before, except now they're smaller, less ambitious, is that it? >> yeah. yeah, like for example, last night he said we're going to cut oil imports, net oil imports in half by 2020. when he ran four years ago he said i'm end dependence on middle eastern oil within eight years. he said four years ago, i will cut the deficit in half to, that would make it about $530 billion in my first term in office. last night he said i'm cutting $4 trillion from the deficit next 10 years. well his deficit today is over a trillion dollars in four years it will be over a trillion dollars. that ain't going to happen. he said i will train a million people for manufacturing jobs. four years ago he said we'll train millions of people for manufacturing jobs including five million people for green energy alone. last month we lost 15,000

manufacturing jobs just last month. gregg: karl he claimed that his plan will reduce the deficit by 4 trillion, and independent analysis confirms that. i looked again this morning at the cbo analysis which is nonpartisan, it says his plan will increase the deficit by 6.4 trillion dollars. he is only off then by what, 10 trillion? >> look, it is a phoney number. first of all that 4 trillion includes a trillion dollars worth of savings that were achieved last year. so he is counting last year's savings again. it includes $848 billion of savings that are achieved by assuming that the iraq and afghan wars go for the next 10 years. gregg: right. >> you magically assume that iraq ended in 12 and iraq ends in 14. he has $800 billion in

savings on lower interest costs on two previously claimed savings. i didn't know interest was a spending program. that is what we're obligated. better way to look at this, gregg, he add as trillion dollars in new spending above the house republican budget and $300 billion in taxes over next 10 years. a net of $700 billion on spending on red ink side and negative side than the republican plan. gregg: he is blaming some of things your ex-boss did? >> he said i ended. he ended on forces of agreement which bush negotiated with iraqis when he left office. he claimed president bush's energy programs that he put in place. states setting standards for what children should learn and meeting those standards. that is president bush's no child left behind program. at least bill clinton had the courtesy to applaud president bush for foreign initiative. president obama claimed

bush's achievements as his own. gregg: karl rove, great to see you. thanks very much with your ever present whiteboard. that threw me off. you had a whiteboard on jobs today. >> gregg, appreciate it. heather: justice for drew party party. the former chicago police officer guilty of killing his third wife. prosecutors will review the mysterious circumstance of his fourth wife and crowd cheering sfx: sounds of marching band and crowd cheering so, i'm walking down the street,

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gregg: bringing the energy big-time in charlotte. former michigan governor jennifer granholm giving one of the last most passionate speeches last night, revving up the crowd over president obama's bailout of detroit automakers. >> 211,000 good-paying american jobs!. all across america. autos are back!.

manufacturing is rebounding!. why? say it!. gregg: wow! do not switch to decaf. that is really working for you. independent analysis by the way of detroit bailout it has been on track to be the most costly rescue of the financial crisis with taxpayer losses, that means your money, lost, compared to this and the wall street bailouts. taxpayers may never get that money back. >> doing a new jersey fist bump. reminiscent of another politician with a meltdown. gregg: talking about howard dean, the scream. heather: reminiscent of that, totally. >> i think it is fantastic. as i said before, this is saying better than the white sox winning the world

series. i want to thank everybody that stood behind us on this. feeling of joy right now is bittersweet. like i said before. i will never have my sister again. i have to go see her in a cemetery. at least i know i go justice and a got a cold-blooded killer. heather: the words of nick savio, the brother of kathleen savio who died back in 2004. her former husband, retired cop, drew peterson, now found guilty of murdering her. but could drew party -- drew peterson be charged in the disappearance of wife number four? they're reviewsing the case of his missing wife stacy. she disappeared five years ago. steve brown joins us live from chicago with the very latest. hi, steve. >> reporter: hi, heather, yes. we understand the prosecutor in this particular case, glams james glascow is looking at this particular

case. this was a case yesterday, if it were not for stacy peterson's disappearance you may not have those hearsay statements and you may not have a conviction in the murder of kathleen savio for drew peterson. so a lot of folks believe these were the critical junctures, critical hinges that got the case through. and yes, james glascow says he is not through with drew peterson yet. >> we are going to aggressively review that case, you know, with an eye towards potentially charging it. >> reporter: but the key difference between the kathleen savio case and the stacy peterson disappearance is that there is no body unfortunately. if you presume that sayssy peterson is dead there is no body recovered. that makes the case infinitely more difficult when you talk to police and prosecutors. heather? heather: steve brown reporting live from chicago, the thank you.

gregg: democrats poking fun at mitt romney's foreign policy experience but were the comments really off the mark? we'll get reaction from governor mike huckabee. >> plus new job numbers are out. team obama saying they need more time to make things better but did the president make his case? we'll debate that. >> folks, because of the decisions he has made, and the incredible strength of the american people america has turned the corner. [ mother ] you can't leave the table till you finish your vegetables. [ clock ticking ] [ male announcer ] there's a better way... v8 v-fusion.

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heather: president obama slamming governor mitt romney on the issue of foreign policy, asking voters to choose him because his leadership has been tested and proven. the president also accusing his republican opponent of living the past. >> my opponent and his

running mate are new to foreign policy. [laughter] [applause] but, from all that we've seen and heard, they want to take us back to an era of blustering and blundering that cost america so dearly. after all you don't call russia our number one enemy, not al qaeda, russia, unless you're still stuck in a cold war mind warp. [applause] heather: former arkansas governor mike huckabee is the host of "huckabee" right here on the fox news channel. he joins us now with more insight. thank you so much for joining us. >> great to be here, heather. heather: i first of all want to get your insight. what did you think about president's speech and all the speeches overall. >> i thought joe biden had a great speech and the night before, michelle obama.

if you were listening what i call a fact challenged listener, switching between honey boo-boo and barack obama gee, that was a great speech. it was like a helium balloon. it was filled with a lot of lighter than reality air that made you float but there wasn't anything in the balloon. he was giving a whole litany of things he was going to do, if you couldn't do it now, why couldn't you do it on last four years. it was empty. people on the left were critiquing it that way. heather: not a lot of facts to back up a lot of language to talk about moving forward. >> to reach out and say i will create a million manufacturing jobs? really? go ahead. pull a rabbit out of your head. make mosquitoes where they don't bite. make it where a woman with a size 11-foot gets to wear a size five shoe. let's go ahead and do all the great things. but that is the problem with the speech last night. he didn't say, here's where

we are, here's how we got there but here's how we're going to fix it and by the way i didn't do this way before because i messed it up and i think that's where the credibility was lost. heather: when it comes specifically to foreign policy president obama really hammered governor romney and his running mate paul ryan said they were inexperienced. president obama himself was inexperienced when he came into office. >> he was incredibly inexperienced when he came into office not just foreign policy he never governed. he never ran anything. he had never been a mayor. he had not been a governor. a state senator and u.s. senator who was absentee in the u.s. senate and spent most of his time in the senate campaigning for president and had a lot of no-shows. that is empty charge. if you look mitt romney record he was involved internationally not only in business, but most people don't understand, governors are very involved in international trade deals. they're not just going on a

trip with a dozen other people, snapping some photos. they're actually negotiating with heads of state and heads of company to bring industry to their state. i can assure you mitt romney had probably had more face-to-face encounters with heads of state as governor of massachusetts than barack obama had as a u.s. senator. heather: that would be something you would definitely know about being a former governor yourself. >> yeah. heather: a lot of praise given to president obama's foreign policy initiatives. we spoke to karl rove a short time ago and he called into question one specifically where president obama took credit for ending the iraqi war. also there was talk about his handling of afghanistan, libya, of course killing usama bin laden. be the fact checker for us. did he deserve that praise? >> you know, let's give him some props here. the war ended on his watch, so okay, you know what he can say it ended while i was president. i said i was going to end it and he did. the fact that some of those things were in motion before he came into office, he

inherited it. he is always talking about what a mess he inherited. why doesn't he say i inherited good things like the staging of the end of the iraq war? so you have to play it both ways and so republicans do too. we have to be fair and say if you can't blame bush for everything, then you don't credit bush for everything either. it happened on his watch. give him credit for that. heather: finally i want to talk about this. why did governor romney not pay tribute to our troops overseas in his acceptance speech? do you think that was a mistake? >> yeah, in retrospect he should have mentioned the fact that we still have men and women in harm's way, serving to keep us free. i think it was focus was on the economy. i understand that, but i think it was not an intentional slight. i think it was oversight. only some things that could have been in the speech but frankly that should have been in there. heather: thank you very much. >> you're welcome. heather: appreciate your insight as always. governor huckabee. gregg? gregg: catch more of the governor right here on the fox news channel. i always do.

"huckabee" airs weekends at 8:00 p.m. eastern time. his office is right next to mind so i can find out ahead of time and let you know. new reports coming out claiming that 30 cents out of every dollar spent in the u.s. health care system is just thrown away and wait until you hear what all that waste amounts to. give you a hint here. it's in the hundreds of billions of dollars. and, a disappointing new jobs report now looming over president obama's acceptance speech last night. he asked for more time to fix the economy. is that something americans are willing to give? a fair and balanced debate just ahead. >> we draw strength from our victories and we learn from our mistakes, but we keep our eyes fixed on that distant horizon, knowing the providence is with us and we are surely blessed to be citizens of the greatest nation on earth. thank you. god bless you.

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heather: developing right now in "america's newsroom", washington state, a wildfire threatening hundreds of homes and cabins in the columbia river george, forcing dozens of families to get out. firefighters concerned that the flames could spread quickly. in southern texas flames shooting hundreds of feet into the air after a gas line ruptures. no reports of any injuries. afghanistan, great britain's prince harry returning to military duty where he will fly apache attack helicopters. the deployment follows an embarrassing trip to vegas. photos of a naked prince popped up on the internet. gregg: president obama appealing to the american people last night saying his policies are slowly returning to us prosperity arguing he needs another term to get the nation back to health. take a listen. >> america, i never said

that this journey would be easy and i won't promise that now. yes, our path is harder, but it leads to a better place. yes, our road is longer but we travel it together. gregg: fair request? marjorie clifton joins us, a former consultant to the obama campaign. and principle of clifton consulting. ford o'connell, former mccain-palin campaign advisor. marjorie, he said he never said it would be easy or quick. yes he did, didn't he? he famously vowed it would be done in three years. he and his economic team boldly promise if his stimulus passed unemployment now would be 5.6%. so, marjorie he really wasn't telling the truth last might night, was he? >> you also have to look at context here. the big question is how fast should we expect things to recover. if you look where we were four years ago, we were

facing one of the gravest economic times in you are entire country. february 2008, until march 2009 we were dropping jobs coming out of the bush administration. gregg: right. >> dropping jobs at an alarming rate. 2010 we got upward turn. gregg: he said he would get it done in three years. >> he said he would make improvements which he has. the question how fast should we expect to see improvement and what is reasonable to expect. i think entire, bill clinton set it up. look, there is no man or woman, i should say that could actually get to make a turn in the economy --. gregg: that is not true either. reagan did it. he had 10.8% unemployment and dropped it to 5%. ford, let me go to you. the president asked for community last night. does that mean, what, more of the same which is what most americans at least according to polling data don't. 2/3 think we're on the wrong track. >> the president's request for four more years sort of border lines on arrogance and in the sense that we

have an unemployment rate of 8% and debt of 16 trillion and you will he is offering more of the same. essentially re-election campaign is predicated on emotional rhetoric, lofty promises. the dark economic reality and bent on tearing apart mitt romney. he is not interested in working across the aisle and not interested in moving to the center. more of the same and america can't afford it. gregg: marjorie, president obama said of the romney-ryan ticket, i'm quoting here. this is what he said last night. they want your vote but don't want you to know their plan. well,rness, what's the president's plan? he identified all these lofty goals like a million manufacturing jobs but he never once said how he would achieve them. >> well, also be clear about what conventions are about. conventions either republican or democratic are pep rallies. they're about encouraging the base. gregg: really? that is all it is is the just a pep rally. >> you have to love these guys. all they want to do is

change the subject. gregg: just a pep rally? >> romney unrolled a 54-point plan that fell flat. we haven't seen a republican economic plan either. and i think, the question comes down to --. gregg: he laid out a five-point plan in his speech. >> gregg, romney laid out a five-point plan. secondly it was 59-point plan. all they want to do is tear apart mitt romney. they have no new answer for anything. gregg: ford, i will say that even "the wall street journal" a week ago really criticized governor romney, saying look, he just kind of glossed over his five-point plan. he didn't get into specifics. for example, he is going to drop the marginal tax rates. which loopholes an exemptions and credits and deductions is he going to close. so come on, it wasn't governor romney also vague? >> gregg, that is very fair. i do think that governor romney will have to get more specific. i think reason why he --. gregg: he refuses to talk

about the loopholes. >> because marjorie and obama would hit him over the head. he is going to have to get more specific. and he is going to have to have a superior debate performance because essentially president obama is bent on tearing him apart, running on more of the same and lofty fact checkers that ap --. gregg: marjorie? i'm wondering overall get beyond the president's speech. several things happened. dnc chairwoman kind of caught lying, well not kind of caught. no other way to put it. caught lying about the israeli ambassador. the south carolina chairman comparing nikki haley to hitler's mistress. one of three democratic officials comparing republicans to nazis. they had to reverse themselves on god and jerusalem. these are more than hiccups, aren't they? are these mistakes really tarnish the convention for democrats? >> no. i think what we need to look at is context. going back to the republican and democratic conventions this is about energy. it is about really creating

messages that get people excited out to the vote. as giuliani pointed out apparently facts and details don't really matter in the conventions. i would argue as american people they do. one is important for the media and fact-checking happening making sure we do hold candidates accountable on both sides of the aisle. >> got to leave it at that. ford, i'm out of time. marjorie clifton, for the o'connell. good to see you both. thanks so much. >> thank you. heather: coming up, for every dollar spent on health care nearly one thirds goes to waste. that is according to a brand new report and you won't believe how much of that is blamed on pure fraud, gregg. gregg: plus reviews are in for president obama's speech last night, putting the president's performance aside, did the speech have the substance that was promised? we'll debate it. >> i never said this journey would be easy. ask me what it's like when my tempur-pedic moves.

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heather: welcome back. a new report putting a price tag on shocking waste in the u.s. health care system. $750 billion a year. that's roughly 30 cents out of every dollar spent without purpose. dr. marc siegel is a member of the fox news medical a-team and a professor of medicine at nyu langone medical center. thank you so much for joining us. >> hi, heather. how are you? heather: i'm doing good. one year estimate of health care waste, $750 billion. that is equal to more than 10 years of medicare cuts in obama's health care law. it is more than the pentagon budget. more than enough to care for the uninsured. how are we squandering away so much money? >> according to the institute of medicine the key problem is something called complexity. this is good news. meaning we have so many new scientific discoveries. as we put them into place in the health care system we

don't know how to administer them. we end up wasting money. we don't have communication on a new solution. tests may be ordered excessively. that is really the problem right there. so i have a question. how are we adding 32 million more people to a system that's wasting $750 billion a year. i have been saying that for the last three or four years. we needed to improve the efficiency of the system before we flooded it with more and more patients who can use it by the way whenever they want. the kind of insurance under obamacare you can use whenever you want. heather: so you're saying basically that will not work under the system as it is? >> right. because of the inefficiency. because of excess administrative costs. because the prices are variable all over the place. i studied that for "usa today." a cat scan, ct scan cost one thing if you pay cash. another thing if one insurer is covering. another thing if another insurer is covering it. no uniformty of costs. doctors are practicingly

defensively there is no tort reform. duplication. not everybody is computerized. the price is inflated. all of this is a perfect storm. it will not be solved in my opinion by excess government regulations will say, ipab say one treatment is better than another. one treatment is more cost effective than another. that actually doesn't work in the real world where real solutions are on an individual basis. so i think excess regulation isn't going to solve this problem. heather: you went through some of the areas of waste. we won't go through some of those. report identified six major ones. 10 recommendations specifically. a couple of them one include payment reforms to reward quality results instead of reimbursing for each procedure. improving coordination among different kinds of service providers. you touched on that a little built. leveraging technology to reinforce clinical decisions. it seems like these things would already be being done? >> there's not enough

communication. you made some great points there. there needs to be an efficiency in communication and no duplication of servicings. i have a problem by the way rewarding quality. let me tell you what it is. i love the idea of being paid if you have a good outcome. what if i'm a doctor and patient doesn't do well. god forbid they die. i shouldn't be paid for that? what if in a situation where i'm only rewarded for quality, you know what happens, heather? i will cherry-pick my patients. i will get paid more by taking care of them. you can't fix the problem by rewarding positive outcomes. that is problem matic. doctors said i did that procedure. i should be paid for it. heather: $750 billion a year in waste. we have to get it under control. >> we're adding too many patients in the system where they can overuse it whenever they want. that will make it worse. heather: dr. siegel, nice to see you. >> good to see you. heather: gregg? gregg: could shake up the race for president in a race

in a dead-heat. impact of today's unemployment numbers with 60 days to go. how it will affect the race for the white house. >> we can help save factories, small businesses, double their exports. if we choose this path we can create a new million manufacturing jobs in the next four years. [ music box plays ] multi-policy discount. paperless discount. paid-in-full discount. [yawning] homeowner's discount. safe driver discount. chipmunk family reunion. someone stole the nuts. squirrel jail. justice! countless discounts. now that's progressive. call or click today. oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great.

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heather: fox news alert, new reaction this hour to last month's weak jobs report. a stunning 368,000 people dropping ouplt of th out of the workforce. the lowest participation. the unemployment dropped to 8.1%. only 96,000 jobs added in the month of august. mitt romney reacting a short time ago saying that if last night was the party, this morning is the hangover. pwraoebpwraoebsreince priebus

just released this. we are not creating jobs fast enough and we are certainly not better off than we were four years ago. time is up, mr. president. also reacting, house minority leader nancy pelosi, she says with today's jobs reports, we must keep moving forward for jobs and a strong he will middle class. republicans keep standing in the way of growth and certainty for our economy. coming up a closer look at what the jobs report means for you and the economy . that report coming down just as democrats wrap-up their big party in charlotte, with just 60 days left until voters head to the polls the nominees are hoping that their prime-time speeches at their respective convention hr-s giv conventions will tkpw*eu them the boos give

them the boost that they need. i'm heather childress in for martha maccallum. gregg: i'm gregg jarrett. one of the main themes of last night and the entire weak in charlotte may this been the president's ability to put americans back to work this morning's job report may be undermining his case for a second term, maybe not. here thousand with their take on last night and the road ahead policy director for mitt romney for president, ron e. chin. thank you for being with us. >> good morning, gregg, thanks. gregg: while it's true that 368,000 dropped out and just gave up, the overall number of the unemployed went from 8.3 to 8.1%. the president will surely seize upon that to say, look, my policies are beginning to work, we've got to see this thing through. your reaction?

>> let's make no mistake, gregg, this is a disappointing report. we've had several months of disappointing reports now. there is no way to spin this report and what it means for the american people. gregg: sure, the unemployment rate dropped, that's how they are going to spin it. >> well, unfortunately as you noted, for every net new job created you had four americans that gave up looking for work. this is not a recovery. the president predicted we would be at 5.4% today if we passed the stimulus. that is 9 million workers that are out of work that should have jobs. the president missed the target begin and again and last night we heard more empty promises and rhetoric. gregg: if things are so bad. gdp growth is slow and sluggish, gasoline prices up, the national debt has increased 5 trillion. according to those numbers, it's pretty a business mal.

shouldn't mitt romney be way ahead right now instead of tied? >> look, there is no question that our economy is not in a good place. there is no question that we need some major changes to get this economy going again, and mitt romney and paul ryan will be out there on the campaign trail for the next 60 days making the case that they have a plan to build a strong middle class with 12 million new jobs and higher take home pay. we look forward to the fall campaign. obviously this will be a tough election, a tough battle, we are prepared to make the case and we believe the american people are prepared for change in november. gregg: maybe they just don't know what mitt romney's real plan is. he wants a dramatic overhaul of the tax code, and he wants to drop the marginal rates f the loopholesand yet he's not and deductions and credits an exemptions he wants to close. that is -- that is huge, that is significant. how can he not tell the american people those facts?

>> well let's back up for a second. this is a race about two dramatically different philosophies. the president is out there saying he's going to raise taxes, he's made no mistake that he's campaigning on a platform of higher taxes. what governor romney and congressman ryan are proceed proceedings is they are proposing broadly lower rates and tax reform. they are going to get some of this under brush, some of the ductses and some of the exemptions that are flattening our tax code. gregg: how do you explain how and which ones and by how much? >> well a number of different bi-partisan commissions over the years have told us exactly how we get there. the key is presidential leadership, that is something that has been lacking, that is something that governor mitt romney will row vied in the white house. gregg: forgive me, you're just not answering my questions. let me put it again. which loopholes and deductions and credits an exemptions that th are going to be rid of. don't the people desaoefr to

know which ones are going, and by how much? >> governor romney has been clear we are going to look to curb deductions an exemptions for high income tax taxpayers. we have a lot of different ways to get there. this is about a process where governor romney sits down with the congress to make decisions about what is going to be best for the american people. gregg: he's not going to let them know ahead of timement he's going to wait to work with congress afterwards. >> there have been a number of different studies and which is that demonstrate how we can get there. governor romney is eager to work with the congress and the american people to determine how we get to a fair, flatter tax structure. gregg: all right. policy director for the mitt romney campaign for president, thank you very much for being here today. >> thanks nor having me, gregg. heather: just as the democrats wrap-up their big week in charlotte the details for the upcoming debates are already being announced. first the nominees head to the university of denver, colorado, that is on october 3rd for a

domestic policy debate, followed by a vice presidental debate on the 11th and center college in danville, kentucky. up next it's onto oster university in new york for a town hall meeting with the nominees and it all wraps up at lynn shall university in boca raton, florida with a tphroerp a foreign policy debate on october 22nd. >> fox confirms that the obama administration is planning to back list the pakistan based haqqani network as a terror group. the group perhaps the most worth less and feared branch of the afghan insurgency is accused of launching several attacks on u.s. troops.

peter doosey live. >> reporter: a u.s. official tells us that many u.s. military and defense officials support the state department's decision because they think the financial sanctions that go along with the title of foreign terrorist organization will help cut off fund-raising dollars flowing into the haqqani network which has launched attacks in the past against the u.s. embassy in kabul and outside u.s. bases in afghanistan. we just got record from brunei, that secretary hillary clinton has already signed a report during a stop there that will be sent over to congress telling lawmakers the haqqani networks meets the statutory criteria for designation as a foreign terrorist organization, and ftl. even though this terror tag is new, the pressure on the militant group is not. >> we are putting steady pressure on the haqqanis, that

is you know, part of what our military does every single day along with our isef partners. we are drying up their resources, targeting their military and intelligence personnel. we are pressing the pakistanis to step up their own efforts. >> reporter: a u.s. drone strike recently killed the son of this network's founder. some members of the haqqani network have been designated as terrorists for quite a white. it's taken years to finally name the haqqani network a foreign terrorist organization. heather. heather: what took so long. >> reporter: our relationship with pakistan is already strained at times. some in the obama administration were worried the organizations could take this the wrong way and there was also a fear that calling the haqqani network a foreign terrorist organization would further complicate negotiations with the taliban. in the end secretary clinton made her decision and she made

it, heather, two days ahead of the deadline congress gave her sunday, back to you. heather: reporting live from washington, thank you. gregg: new controversy in the case of the man accused in the devastating fort hood shooting. we will tell you what a judge is forcing him to do before he goes to trial and how this is attorneys say he's tried to prevent nearly three years of trial delays. heather: plus a heroic rescue caught on tape after a driver falls a sleep at the wheel with a 3-year-old child in the major of a middle highway. gregg: reaction to the president's dnc speech has ranged from home run to hit and miss. we'll put the president's step answer address under the microscope and gauge the enthusiastic reactions coming from all sides of the aisle good or bad. >> he said he's going to cut $4 trillion from the budget in

in the next ten years, well his definite is over $4 trillion and in the next four years it will be over $4 trillion, so that ain't going to happen. ♪ ♪ ♪

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gregg: we're learning that accused fort hood shooter nadal hasan has tried to plead guilty to the 2009 rampage, not once but twice. that according to his attorney. hasan tried to challenge a law prohibiting judges from accepting guilty please in death penalty cases, but the trial is now on hold as he appeals yet another ruling forcing him to shave his beard. according to army regulations

soldiers who disobey orders to get rid of facial hair can be shaved against their will. heather: the president obama's dnc acceptance speech last night has been described as everything from epic to very presidential, and even a home run, but he has got his fair share of critics too who say that that home run was more of a hit and miss than anything else. one analyst says that his criticism may have more to do with the president's history of inspiring speeches and what he saw as the failure to deliver almost anything of substance last night. >> i was stunned. this is a man who gave one of the great speeches of our time in 2004, and he gave one of the emptyist speeches i have ever heard on a national stage. there was nothing in it. at least romney had a five-point plan and he pulls numbers out of a hat. he doesn't say how we get from a

to b it's a vision. i have a vision of america where there is no disease and everybody has a private airplane. unless i tell you how we get there i've said nothing. heather: mary katherine ham is editor at large for hot air.com and a fox news contributor. and juan williams is a fox news political analyst. thank you both for joining us. i know you've had a busy couple of weeks. marry catherine i'll begin with you. was this an empty speech? >> i don't think there was a ton there. there was some talk about manufacturing and energy sector jobs, they weren't real specific. look, i think it was under well ming i think most people have said. a lot of expectations were very high. i think it's been a longtime since barack obama has given a really big soaring speech that really hit it out of the park. i wasn't terribly surprised. i think he was knee capped by nostalgia. they were trying to make this

about any year plus 2012. that's why clinton was there and running tapes from other conventions. it's from a different time. he had to come on stage and address 2012 which is harder than what he was doing in 08 or 04. heather: kneecap by in nostalgia. i like that phrase. did the president give enough specifics from the speech he gave last night? from that speech what did you get that his plan is? >> i thought there was a very clear delineation of vision, heather. i thought it was very clear the difference between barack obama and mitt romney and he made this into a very, again, clear choice for voters. and that was his goal. and if you're asking about specifics, i think that he was very clear in saying that his approach on the tax code is to raise taxes on people who make more than the $250,000. he said in his language he's not going to stick it to the middle class, in that tax reform effort. he also said in terms of

simpson-bowles, the effort to reduce the deficit, he is of a mind to make a deal. he wants to make a deal along the lines of simpson-bowles. but he said the republicans haven't been willing to acknowledge any increase in tax revenue as part of the deal. >> he could have done that. >> i think on both those levels here was something quite clear and specific that he offered the audience. i would add this. i don't know anybody who was in the audience last night, and i was there in charlotte, and after in charlotte, and even people who are not fans of barack obama, democrat, they felt the energy in that audience, they said, you know what, that was a speech that spoke to this audience and to democrats and revved up their base. heather: the jobs report came out today, it was expected to come out and there were reports that president obama had been given a copy of it, he already knew what was to come today. perhaps that's why he mentioned as marry catherine mentioned, the jobs. he talked about creating 100,000

new math and science teachers. 600,000 natural gas jobs, but no specifics, juan. how is he going to do that? the unemployment rate is still 8.1%, only 96,000 jobs created last month. >> well, what you see is that in fact the unemployment rate went down, it's 8.1, but here is the point, president obama has been very clear, and again this is a clear delineation from mitt romney that he wants to invest in american workers, in american education, and in american infrastructure and the like. that is a clear difference with romney. and i think he is willing to spend government money in order to do it. a lot of people will say that will blow up the debtor whatever, but it's a clear-point delineation. it gives you an opportunity as a voter to make up your mind. heather: marry catherine you have an opportunity now. what do you have to say? >> president obama always gives people a choice, he always makes that clear.

some times the choice is between him and a straw man, frequently. he very frequently inspires people in the room. authors the true pwhrao*efrs, i'm nobelievers, i'm not sure he reaches anybody else. he has not met the promises he made in 2008. he said no one could have met those promises, let me try again. he is perfectly willing to spend untold amounts of federal money until we run out of it and beyond. and mitt romney says okay let's look at our budget and figure out what we can do here. he has been totally absent on any plan. after the point of simpson-bowles he was out of there. now he comes to the plate and says i'm totally going to do this in the next four years. i think it's hard to believe a lot of what he says. that's all after his performance, how are you going to get there. heather: 60 days to get there. thank you both for joining us, we appreciate it. thank you. >> you're welcome. gregg: the president's speech may be the headline of the day but many agree the moment of the night came not from the commander in chief but when

former arizona congresswoman gabrielle giffords led the crowd in a very emotional pledge of allegiance. >> i pledge allegiance to the flag of the united states of america. and to the republic for which it stands, one nation, under god, indivisible, in liberty and justice for all. [cheers and applause] gregg: gabrielle giffords as you know was shot and wounded in january of 2011 and some say her triumphant spirit in the face of tragedy was one of the highlights of the dnc's final night. martha maccallum is here and she said last night there wasn't a dry eye in the convention hall, there wasn't a dry eye in my office either when i was waeufpgt. heather watching it. heather: that's something that

transends political parties. gregg: good for her, what great courage. heather: we were on the set together when that happened, and she has come so far. gregg: amazing. heather: coming up, they put their lives on the line to protect our freedom and now a new push to make sure americans veterans find work when they return to the home front. gregg: and a dramatic rescue caught on tape, what one officer had to do to save an unconscious driver and a 3-year-old passenger. >> my main thought was i need to get the car stopped. i've got daughters myself and there was a little girl in the back seat. there was a lot of traffic, i didn't want the situation to get worse. >> i pledge allegiance to the flag of the united states of america. >> our president understands the value of the person opportunity

because he lives it. >> this is not the time to out source the job of the commander-in-chief. >> there is only one candidate in the race that is on our side. >> there is only one choice, reelect president obama. >> if you believe in a country where everyone gets a fair shot then i need you to vote this november. >> i accept. >> i accept your nomination for president of the united states. [cheers and applause] [. >> the final night of the democratic convention. >> everybody in this room on their feet. >> they are fired up. >> they are reaching a boiling point. >> the democratic national convention officially closed. >> your voice must be heard in this election. >> now is the time to restore the promise of america. [cheers and applause] many of my patients still clean their dentures with toothpaste.

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heather: 24 past the top of the hour. let's take a look at some of the stories making headlines. a new fatal case of hanta virus is now linked to yosemite national park, one of two new cases. the others suggest that the virus is spreading to new areas of yosemite. a california judge looking into the legality of former governor arnold schwarzenegger's decision to cut the manslaughter sentence for the son of a political ally. the lawsuit argues that he broke the law by failing to alert the victims' families or the district attorney. and a washington sheriff's deputy coming to the rescue of a driver who passed out behind the wheel with a 3-year-old passenger. the car was moving slowly down a major highway and then the deputy reached in and opened the window and pulled the emergency brake. the driver and the young passenger were both unharmed.

gregg: on the job front now, among the millions of americans out of work more than a hundred thousand veterans struggling after returning from serving overseas. phil keating is live in miami with how some companies are hoping to change that and put our vets back to work. phil. >> reporter: hi, gregg. veterans coming home from warfare can often find the transition from us straying lee difficult from warrior to civilian especially when it comes to finding that civilian jobs. but with war tested skills and employers who value them, the jobs can be found. five years ago in iraq this man loaded f-16s with lethal fire power and in 2007 a roadside bomb destroyed joshua's kneecap. >> i come back and okay, what am

i going to do? >> reporter: that is the ultimate question in a major challenge stressing most veterans. after months of looking he landed a g4s secure solutions. betts took up at a corporation managing drivers. >> it took me a while to get my foot in the door. it was mainly because i showed up ever day and said i wasn't going anywhere until i got that job. >> reporter: many companies now use job fares to specifically recruit veterans. ryder aims to higher a thousand vets over the next four years, g4s, 6,000. >> they already have skills set in their mind, they know what discipline is. they know how to follow orders. they won't question authority. >> reporter: they say they also arrive highly adaptable with war tested experience in accomplishing the mission. >> you're missing a tremendous opportunity if you're not

offering employment opportunities to veterans. >> reporter: the national unemployment rate is at 8.1% but for veterans from afghanistan and iraq that number is 10.9%, substantially higher, but for veterans it's down from the year average of about 12% last year. but this morning pennsylvania senator pat toomey would provide an online data search tool to allow veterans to match their scales with jobs available. he expresses there should be bi-partisan support. gregg: phil keating live in miami, thanks very much. heather: up next new reaction from the white house on the august jobs numbers, just hours after the president's pledge to put americans back to work at the dnc, he says the g.o.p. has had the same failed prescription for the last 30 years. up next, a former economic adviser to president reagan joins us to discuss that claim. and whether the president's plan

for the future is based in fact or fiction. >> we can create a million new manufacturing jobs in the next four years. you can make that happen. you can choose that future.

gregg: fox news alert, new reaction from the white house reacting to the new jobs numbers just out showing 96,000 jobs added in the month of august, saying that more work needs to be done but that the u.s. economy is continuing to recover from the worst downturn since the great depression, and that grim report on u.s. unemployment just hours after the president pledges to put americans back to work, the unemployment rate there you see it falling to 8.1% in august, but mainly because frustrated job seekers gave up their searches. the white house says this shows there is more work to be done. art laugher joins us a former economic adviser for president

ronald reagan. art, always great to see you. your reaction to these job numbers today? >> they are not very good. it's fairly sad that, you know, to get just a standstill, just to keep the economy at the regular level you need about 125 to 130,000 jobs a month, just to keep up with population growth. 96,000 is obviously below that. we are getting worse and worse and worse. the reason the unemployment rate fell as you said, gregg, was because a lot of the people who were unemployed said to heck with it, i'm getting out of the labor fort and therefore they are no longer registered as being unemployed. gregg: right. >> it's just a fall false number, and that participation rate as it's called i think it's the lowest level since the late 1970s, early 1980s, and it's a tragic message that is being sent out to people, and i'm very sorry, i wish it were much higher. gregg: absolutely a lot of heartache out there. >> a lot of heartache. gregg: let me take you back to

early 2009, the president having just taken office. he and his economists predicted that unemployment today would be around 6%, even if his stimulus was not passed, not passed, mind you. >> i know. gregg: instead of course it's 8.1% today which invites the question, art, did the president's policies impede the recovery making matters worse by acting as a depressant instead of a stimulant? >> yes. they surely did. you put it exactly correctly, gregg. i mean a macing. governmenmacing. government spending is taxation, pure and simple. milton made that statement time and again. by the way, gregg, just so you know, that's what w tried to do as well. i don't see any difference between obama and w. at all on this issue. i mean it's just a terrible tragedy for america, and their

policies have failed as did w.'s. i'm glad it's not w. running against obama. i love it that it's romney, because for the first time in many, many years we have a really clear choice. tax cuts versus tax increases. controlled spending versus increased spending. deregulation versus further regulation. obamacare versus repeal of obamacare. all of these things are starkly broken and that is what this election is all about, and i'm glad the voters have a really clear voice. they haven't had one since reagan in 1980. gregg: republicans are obviously, as ronald reagan did, framing the election around the question, are we better off today than we were four years ago. >> yes. gregg: i want to put up on the screen, here is a comparison of january 02009, four years ago essentially and now. there you have it, unemployment 7.8%, has gone up to 8.1%. the median income has gone down

roughly $4,000. gdp negative 5.3 to 1.7 but that is still very, very sluggish following a recession. gasoline prices really way up, the national debt of course the president has added 5 trillion, it's at $16 trillion. people on food stamps look at that up to 46.7 million. so art, do the facts answer the question are you better off? >> well, i could also put some facts in there, gregg the other way. the stock market is way up under obama. but the truth of the matter is, if you compare obama objectively, to the other recoveries this is the single worst recovery the u.s. has ever had in the history of our existence. it's as par below the next worst recovery as the next worst recovery is below the very best recovery. gregg: what should the gdp be following this recession. >> let me tell you what we had in 1983 and 94.

in the first quarter of 83 it was 5.5%. then 7.5%. then 8%, 8%. all of in range of 83, 84 we were growing at chinese growth rates honestly. we were increasing employment, the participation rates never fell. gregg: which is why i bet you found the following remark last night from the president rather curious, take a listen. >> they want your vote but they don't want you to know their plan. and that's because all they had to offer is the same perscriptions they've had for the last 30 years. >> well, that is supply-side effects, you are known as the father of supply-side economics. the point is at least from your vantage point, you just cited some of the numbers, it worked back there reagan brought

unemployment down by the time of his re-election, then 5% after that. then of course you identified the gdp boost. >> yeah, you know the thing is also very curious, gregg, is that he's using bill clinton as an example of his policies. bill clinton with us a great president, i voted for him twice. bill clinton was a supply sider, very much in the image of reagan. he cut government spending as a share of gdp. he got rid of the retirement test on social security. he had the biggest capital gains cuts in our national history. he had welfare where you had to look for a job to get welfare. he had the fed chairman alan greenspan, now they say he's like clinton. i don't think of anything further from the truth. bill clinton is a great president, barack obama is a great guy but he's not a great president. he's about as bad a president as i've ever seen and he's surely not cut out of the cloth of bill clinton, that is for sure.

gregg: father of supply-side economics. and the laffer curve. always great to see you. thanks. >> great to see you, gregg. bye-bye. heather: heavy rains causing severe flooding, roads washed out homes and cars sitting in water. we'll tell you where folks are struggling just to stay dry. gregg: bain capital brought up yet again last night at the convention, democrats hammering away at the company and governor romney's activities there. do we really know the truth about it? a closer look next. >> so some of us had this idea if we really believed our advice was helping companies we should invest in companies. we should bet our ourselves and on our advice. so we started a new business called bain capital.

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gregg: the remnants of hurricane isaac causing dangerous conditions across southern new england right now, the heavy

rain submerging roads in massachusetts as well as rhode island. the storm cut power to some 125,000 people, water from the fall river rose so fast it trapped drivers inside their cars. >> i started pushing the door, pushing the door and finally the door just opened a little bit and i squeezed out. when i got out it was above my stomach. >> i had to rescue my daughter out of the house and my two dogs. >> we ended up with 3 inches, close to 4 inches in our store. gregg: isaac is not the only problem in the region. hurricane leslie, that is right, creating some big waves along the coastline. heather: vice president biden hammering governor romney's record at bain capital, suggesting to americans that he would run the country like a corporation. the vp saying that even though romney grew up in detroit and his father ran american motors he was, quote, willing to let

detroit go bankrupt. >> i think he saw it the bain way. i mean this sincerely. i think he saw it in terms of balance sheets and write offs. folks, the bain way may bring your firm the highest profits, but it's not the way to lead our country from the highest office. [cheers and applause] heather: but are the democrats telling the real story about bain? deroy murdoch syndicated columnist and fox news contributor joins us now with more. thank you for joining us. >> hi, heather, how are you. heather: i'm doing good. you wrote an article, you called it obama's base banks with bain. what do we not know about bain? >> what's very interesting is a lot of the people who are in charlotte screaming loudly for president obama's re-election benefit from bain capital. a friend of mine and i took a look at this and we found that many of the biggest investors in bain capital happen to be for

example government workers, retirement funds and pension funds including those for public retirees, i should say public employees in iowa and nevada and retired teachers in ohio. they've invested something like 1.5 billion with a b in bain capital. you've got major elite universities which have their endowments invested with bain, including such schools as columbia university, where obama went undergrad. and harvard where they both went to law school. you have very large government employee union-type pension funds, major universities and center left foundations such as the ford foundation an th the oprah winfrey foundation which has invested in bain. you have a lot of groups on the left side of the political spectrum complaining about bain yet that's where they have invested their money and they are profiting from the corporation which they denounce as founders of outsourcing and a cold-hearted company and that's

where many of them have their money and people are pensioners, who are enjoying their pensions because of the excellent financial returns that bain capital has been able to plea dues. heather: that begs the question then why would the government, university leaders, foundation chief let a company like bain, you know, over sea their assets? >> i think what they are interested in is not the sort of social justice that you heard about in charlotte. what they are interested in is very respectable and positive returns on investment. and private equity funds like bain capital actually deliver on those assets. what the big funds are is basically if you're a retired teacher, firefighter, a cop, a first responder, what have you, social worker this money is taken out of your check, put into pension funds. the pension funds invest this money. the intention is to invest it have the money give you high returns so people can have good

retirements. the california state teachers retirement system has i believe it's about -- what is the exact number, 1.25 billion, 1.25 billion invested in bain and the response from one of their spokesman was we are interested in high returns, we are not interested in political speeches, we want high returns for our members, about 850,000 retired teachers in california, and they are interested in seeing a very high returns on investments so people will have comfortable retirements, including my mom who by the way is a retired teacher in california. so they are not interested in speeches, and green technology, and all this sort of thing, they want to see these investments do well so that the retirees will have comfortable retirements, so they put their money into organizations like bain capital. heather: and you also found out that about 80% of these institutions prospered? >> that is right. bain capital, of the companies in which they invested such as

staples, guitar center, sports authority. bright horizons which is a daycare center, about 80% of the companies in which they invested profited and had positive revenue. 20% did not do well. when you invest in companies they do not all prosper. they have added private sector jobs, people are working for these companies. bain capital has had a very positive impact on the lives of many people and people are enjoying very comfortable and profitable careers in working for careers in which bain capital has invested. democrats should talk about this and they don't. heather: thank you very much. gregg: 80% success rate pretty impressive. now that the political conventions are over the presidential campaigns are kick into high gear and governor mitt romney visiting two swing states today, but first he talks to the fox news channel. a live interview with our own bret baier straight ahead. and stunning new pictures showing curiosity's tracks on mars from space. these you've got to see.

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jon: good morning i'm jon scott. what a week. the democrats wrapped up in charlotte with a speech from president obama as we get a sobering jobs report this morning. we'll have reaction to both throughout the next two hours, plus a live exclusive interview with presidential candidate mitt romney, his first on camera comments since president obama wrapped up the democratic convention. it is a big day ahead. we'll see you for "happening now" in just eight minutes. heather: leaving its mark on

mars. we are getting some brand-new images from nasa's rover curiosity. check this out the enhanced image capturing tracks from it's first drive. it shows the rover as a bright boxy vehicle doing a zig-zag pattern, spotting its parachute and protective back shell which were jetta sonned by the rover last month. cure os satisfactory tee designed to take two years to explore mars to see if the area could have once supported microbial life. gregg: i think it's possible. colleges are becoming the latest battleground in the fight against smoking. that's right the number of schools instituting a complete ban on tobacco really skyrocketing. it's a battle that some see as an attack on personal freedom, though. kaud yeaclaudia cowan is live

in san francisco. >> reporter: more than ever today the war on tobacco is being waged on campus. 774 universities and colleges have strictly limited where students and staff can light up and more than 560 have banned tobacco use all together. >> they are not saying you can't ever smoke, what they are saying is you can't smoke in ways that would harm other people and that's why these campus policies apply to indoors and outdoors. >> reporter: while no one wants to breathe unhealthy air many students and faculty members argue lighting up helps them relax or focus. even many nonsmokers say all-out bans go too far. >> the smoking ban represents another in a long line of steps by the state and local governments to try to unnecessarily restrict a peaceful behavior and i think that is something that should not be tolerated in a free society. >> reporter: this year alone more than 125 campuses have snuffed out smoking and dozens more will soon do so. california's public universities, including u. c.

berkeley will be smoke free by 2014. to bobby saxton it's another example of political correctness runamuck. >> there are other restrictions they are trying to impose on plastic water bottles and bags. the idea is, where does this stop? >> reporter: supporters point to studies that show most life-long smokers started smoking as young adults and that colleges have a responsibility to help people quit or never light up in the first place. gregg, critics wonder when colleges became an arm much the surgeon general's office and an open air campus became the domain of nonsmokers only. gregg: i'm really dating myself. in the 70s i remember we used to be able to smoke in class, as long as the professor smoked, and then it was okay back then so things -- >> reporter: times have certainly changed. gregg: boy they sure have. all right. claudia cowan, who has probably never smoked. thank you very much. i'm dating myself. heather: you are dating yourself. you always do that though, i'm

not going to say anything about your age. gregg: i don't smoke any more. heather: not today anyway. 60 days to go before election today. mitt romney is working to win over swing-state voters today. but he's also sitting down with fox news. gregg: and our 40 missing plastic pink tpa ming goes being held hostage? say it ain't so. take a look at these. there is word there is a ransom note. we'll tell you about that in a second. ask me.

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[ woman ] ask me why i'm glad i didn't wait till i'm too old to enjoy this. [ male announcer ] treat yourself to the ultimate sleep experience and save up to $400 during the tempur ergo savings event. plus visit tempurpedic.com for full details on our 0% apr financing with four years to pay. don't wait. the tempur ergo savings event ends october 14th. visit tempurpedic.com now. tempur-pedic. the most highly recommended bed in america. >> welcome back. new developments in the theft of 40 of the plastic pink flamingos gregg was telling you about. massachusetts homeowner, arthur o'neal, the fake birds disappeared from his yard. the flock, just like this one, had been a neighborhood attraction. he just received one of them back, gregg